Pending home sales rise again in November

Pending home sales rose for a third consecutive month in November, indicating that demand for housing remains strong.

The National Assn. of Realtors said that its pending home sales index, a forward-looking indicator based on the number of purchase contracts signed, rose 1.7% over October and was up 9.8% from November 2011.

“Home contract activity continues to improve,” said Lawrence Yun, chief economist for the group. “Home sales are recovering now based solely on fundamental demand and favorable affordability conditions.”

The index hit a level of 106.4 last month. A reading of 100 is equivalent to the level of contract signing in 2001, the year the index was started and also a base year in which the buying and selling of homes was considered historically normal for the U.S.